Would you say the firm is price discriminating? Why or why not, and if yes what

Question

Would you say the firm is price discriminating? Why or why not, and if yes what type of price discrimination is this? If people began trading these hard drives freely between the US & Mexico, what would happen to the price? (Add the two demand functions together to get a combined demand function for both countries. You will get 2y = ... & then continue from there.) Would total surplus be higher or lower than when the hard drives were not being traded across the border, and why? (2 points)

Explanation / Answer

When two countries would come for trade, it would automatically lead to equalisation of price. Drive will move towards the higher price destination. Further, if the trade is not allowed then surplus would be adversely affected where the price is higher. higher price shall lead to fall in the cosumer surplus. On other hand, country with abudant of drive shall benefit in the form of consumer surplus since there would be lesser price.

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